Shareholder Agreement

A Shareholder' agreement or stockholders’ agreement is a legal document that lays down the rights and responsibilities of Shareholder of a company.  It also lays down the fair pricing of shares and protects the interest of Shareholder by allowing them to decide who may become future Shareholder in the company.

A Shareholder agreement is an important investment document of a business as it also enumerates the percentage of a shareholder’s ownership in the company, restrictions on the transfer of shares, dispute resolution between the company and shareholder, etc. 

Draft Your Shareholder Agreement
At INR 9999

What You'll Get In The Package

Inclusion

  • Telephonic consultation with the lawyer for 20 minutes.
  • Drafting of the Shareholder Agreement.

Exclusion

  • Additional legal work after signing of the agreement.

Documents required to draft a Shareholder Agreement

  • Details relating to the number of shares, price of such shares and lock-in period.
  • Details of the company and the Shareholder.
  • Other information required for drafting of the agreement.

Procedure to draft a Shareholder Agreement

Once the requisite information is submitted and sent to the lawyer, the lawyer creates the shareholder agreement draft and sends it for approval. Necessary changes are made if required and the document is finalised and ready to be signed.

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FAQs

What is a Share?
A share is a part of the company's ownership for which the share's owner gets a part of company's profits.
Who is a Shareholder?
A shareholder is any person who holds some stock/share of the company. Whenever the company earns profits, the share value of the product increases and the Shareholder gets a part of the company's profits. A shareholder also holds the right to vote on how the company would be managed.
What is a share subscription agreement?
A share subscription agreement sets out how many shares are being issued, if shares are subjected to any conditions such as vesting, subscription price of those shares, when the startup will issue the shares, etc. It also includes company representations and warranties.
How to draft a Shareholder agreement?
A Shareholder agreement must be drafted by an experienced documentation lawyer who can make a Shareholder agreement on the basis of all the requirements of a business and add all the requisite provisions relating to rights, privileges and responsibilities of a shareholder.
What are the important clauses of Shareholder agreement?
A Shareholder agreement includes the details regarding who can be a shareholder, who can serve on the board of directors, price and number of stocks, privileges of a shareholder, etc. However, the clauses of a Shareholder agreement depend upon the specific requirements of a business.
Why is a Shareholder agreement important?
If there are 2 or more Shareholder of a company, it is recommended to have a Shareholder agreement in place for the protection of both the Shareholder as well as the company. A written document can be used in case of any legal disputes that may arise in future relating to the management of company, violation of shareholder’s rights or any other legal disagreement.
What are the rights of a shareholder?
The rights of a shareholder include the right to make changes to MOA or AOA, transfer shares, receive dividend, protect minority Shareholder, appoint directors, take legal action against the director, etc.
What are the duties of a shareholder?
The Shareholder has a duty to participate in the general meetings, consult on the matters of finance and look over the management of the company.